Deep Down, an oilfield services company, reported net income of approximately $0.2 million, or $0.01 per diluted share for the year 2016, compared to a net loss of $1.8 million, or $0.12 loss per diluted share in 2015.
Revenues in 2016 were $25.4 million, an increase of 2% compared to revenues of $24.8 million in 2015.
Gross profit increased $1.5 million in 2016 to $9.0 million as compared to $7.5 million in 2015, and gross profit as a percentage of revenues for 2016 increased to 36%, as compared to 30% for 2015. The increase in gross profit and gross profit percentage was primarily due to increased costs incurred on prolonged fixed price project during 2015, which did not occur in 2016.
At December 31, 2016, the company reported working capital of $12.0 million, including cash of $8.2 million.
Ronald E. Smith, CEO, stated: “In light of the challenges in the Oil and Gas industry, we are pleased with our results for the year ended December 31, 2016.
“While our current backlog of our core products and services is $23 million, interest in our services for non oil and gas applications continues to increase.
“We have been approached by various academic and scientific organizations to partner with them as they develop new deepwater technologies for other industries. As a result of the positive outcomes of our initial activities we are optimistic about our future involvement in such initiatives.”